Why government is concerned with contractors taking up multiple projects

 

Government officials have raised concerns about contractors taking up more government projects than they can execute.

The officials said this has become a challenge in the implementation of government projects as one contractor bids for more than one contract with different companies.

Speaking in Kisumu, Deputy Chief of Staff in charge of delivery and government efficiency Eliud Owalo, said this is one of the many concerns they have noted.

He noted that some contractors were taking up more projects than they could execute.

"The purpose of doing these physical visits to the projects is to assess whether the reports we get from Ministries on the implementation of projects are correct. Most often, we realise there are discrepancies in reports on what we get from line ministries and what is on the ground," he said.

He claimed some contractors use different companies to bid for more than one contract at a given time, which was becoming a challenge in the implementation of government projects.

"The contractor then spreads himself or herself then runs out of capacity. So, when it comes to implementation, it becomes difficult, and then you realise you have awarded one government contractor more than one project," he explained.

He added: "Examples, if we have markets being developed in the Nyanza region. You find that one contractor has used six companies to bid, undercutting competition by lowering prices. When it comes to implementation, he is not able to because he is financially stretched. We ask contractors to stick to what they can manage."

Owalo told contractors to stick to the volumes of projects they are able to implement within a specific period of time.

He urged the procuring and implementing agencies of government to do due diligence when it comes to the procurement of projects and to ascertain that the information furnished by contractors on their capacity is true.

He told government agencies to conduct visits to contractors and assess their capabilities, and determine whether they can execute the project.

He further noted that the projects were facing political interference, with politicians meddling by hiding behind certain contractors.